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*
No. L-74917. January 20, 1988.
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* FIRST DIVISION.
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GANCAYCO, J.:
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1 Decision, pp. 2-3, pp. 35-36, Rollo. These are the findings of facts in
the said decision of the Philippine Clearing House Corporation (PCHC),
board of directors in Arbitration Case No. 84-033, which are final and
conclusive upon all parties in said arbitration dispute appealable only on
question of law. (Section 13 PCHC-ARR, rules of procedure).
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x x x x
The deposit reserves maintained by the banks in the Central
Bank, in accordance with the provisions of Section 1000 shall
serve as a basis for the clearing of checks, and the settlement of
interbank balances X X X.
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cashiers check; the travellers check; and the crossed check. The
Court, further elucidated, that while the Negotiable Instruments
Law does not contain any provision on crossed checks, it is
common practice in commercial and banking operations to issue
checks of this character, obviously in accordance with Article 541
of the Code of Commerce. Attention is likewise called to Section
185 of the Negotiable Instruments Law:
In presenting the Checks for clearing and for payment, the defendant
made an express guarantee on the validity of all prior endorsements.
Thus, stamped at the back of the checks are the defendants clear
warranty; ALL PRIOR ENDORSEMENTS AND/OR LACK OF
ENDORSEMENTS GUARANTEED. Without such warranty, plaintiff
would not have paid on the checks. No amount of legal jargon can reverse
the clear meaning of defendants warranty. As the warranty has proven
to be false and inaccurate, the defendant is liable for any damage arising
out of the falsity of its representation.
The principle of estoppel, effectively prevents the defendant from
denying liability for any damage sustained by the plaintiff which, relying
upon an action or declaration of the defendant,
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We agree.
As provided in the aforecited articles of incorporation of
PCHC its operation extend to clearing checks and other
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Banking Corporation
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6 94 SCRA 357.
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6 63 Phil. 711.
7 Republic Bank vs. Ebrada, 65 SCRA 680.
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o0o
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